Real estate experts are expecting property prices to fall in 2018 — but not enough to help first home buyers get a foot on the property ladder.
Perth real estate agent and property expert Geoff Baldwin said he expected the Sydney and Melbourne markets to cool slightly in the New Year, with demand growing in Perth.
- Sydney prices are 10% overvalued and a slowdown is coming
- Brisbane maintains a healthy and sustainable market
- Perth is becoming a prime target for foreign investors fleeing unaffordability in Sydney and Melbourne
Mr. Baldwin said Sydney’s “ridiculous” property prices had been caused by “emotional” buying — and that prices were due for a degree of correction.
“In my opinion Sydney is 10 per cent over the top value-wise and I can see it taking a bit of a hit. Traditionally when Sydney slows Perth takes off and we’re already seeing interest from Chinese buyers and prospective developers,” he said.
“A slowdown is absolutely coming for Sydney — prices are just ridiculous — and the market has been pushed very hard by foreign investment and buyers. Chinese money is going out of Sydney and probably Melbourne as well and coming to Perth.
“Brisbane is pretty solid and healthy, it’s not overpriced, and we’re seeing reasonable activity without it getting overheated. Hobart is on fire compared to recent years in Tasmania, and the Northern Territory is off the boil.”
Mr Baldwin said the mining industry was picking up in Western Australia and migration was increasing, which in turn was strengthening the property market.
As a result, he said Perth was becoming an attractive option for investors who might not be able to afford to buy in Sydney or Melbourne.
“Absolutely it’s a good time to buy now in Perth, it’s certainly not going to get any cheaper. It’s the perfect storm with low interest rates and prices and availability,” he said.
“But it will be a long wait before Sydney gets to an affordable level and I don’t think that will happen — it’s almost impossible to buy a first home unless you go a long way out from the CBD.”
View the original article at News.com AU